Are you waiting for your videos to go viral before getting paid by TikTok? Do you want to keep 100% of your tips received?
We spoke to a TikToker Mark (name changed to withheld identity) who spilled the secret of how he saves 100% tax and keeps everything he makes on Tiktok through tips!
Tiktok is a social media platform for making, sharing, and discovering short videos, and it has been gaining a lot of users over the past few years. “Tiktok has given me a whole new community of devoted fans and supporters, which has significantly increased my visibility as a creator. Evidently, posting my content on TikTok was primarily done to entertain and keep my followers interested. In addition, I share my comedy videos, motivational quotes, highlights from my stand-up sessions, and much other content.” he shared.
“But, over time, and with consistency, my audience began to grow bigger and larger. I was beginning to average a minimum of 3k-5k likes on a single video within a short period, and many of my fans always ask how they can support my content.”
TikTok retains 50% of the revenue known as "diamonds."
Interestingly, TikTok has a feature that allows users to gift their favorite creators to show appreciation for their content. He continued, “I would occasionally host a Livestream, interact with my audience about what they find interesting, and I would receive TikTok gifts. I consequently get virtual gifts from the platform in various categories (Panda, Italian Hands, Love Bang, Sun Cream, Rainbow Puke, Concert, I’m Very Rich, Drama Queen). Various points accompany these virtual gifts that I can exchange for real money. However, TikTok retains 50% of the revenue, known as “diamonds.” So, to withdraw funds from the platform, I must first link a PayPal account to the platform. Sadly, they take their service fee when I use PayPal to receive payment. Thus, only a very small amount is left over at the end.”
TikTok and its Tipping Dilemma!
“Undoubtedly, I maintained my content and continued to gain exposure and an audience. But unfortunately, exposure only doesn’t pay the bills. So, surprisingly, the platform introduced tipping features for its creators. Wow, it was the best news for me as a comedian, putting smiles on the faces of thousands of followers and millions of users across the platform because it means I can get rewarded for my creativity.”
Once we explored this further, we understood the tricky terms and conditions that come with TikTok Tips. Expectedly, there were conditions and requirements to meet to use the tipping function, which included setting up a payment provider, particularly Stripe. However, despite the tip functionality, there were some restrictions creators had to deal with. For example;
- Approval from the payment provider takes 48 hours.
- Creators can only receive a certain amount of tips per day
- The tip feature is not available in some countries. As a result, you can’t get tips from such regions.
Despite all this, the payment provider charges a fee for each transaction, and regrettably, a TikTok creator is required to pay taxes on all platform revenue. The absurdity of this!
TikTok Tips Are Taxable!
Mark continued, “Apparently, according to the law, I am a business owner because receiving tips is considered earning an income. As a result, a self-employed individual is legally considered to be operating their sole proprietorship. This doesn’t make sense; I’m already losing some of my earnings due to transaction fees, and now I have to bear the burden of being taxed on my earnings –self-employment and income tax."
However, the law is the law! Of course, no one wants to pay a considerable tax, especially when your income is not fixed but subject to how much effort you put into your content. Hence, this became a big worry for TikTok content creators, and they needed answers to:
- How to receive TikTok earnings without paying transaction fees?
- How to minimize the taxes to pay on TikTok income?
- How to keep 100% of TikTok content creation earnings?
Mark shared the solution to this dilemma. "All of these were a worry for me until I shared my concern with a friend who is a Twitch streamer. He told me about how he accepts crypto tips and donations on Twitch without paying any transaction or additional fees. So naturally, I couldn’t wait to hear more about it. The answer was crypto! Since cryptocurrencies allow for quick, safe, and secure transactions, I was sure I would be able to accept tips for my audience with crypto on TikTok."
Mark used a platform named Cwallet. Interestingly, getting started on Cwallet to use the tip box feature was straightforward as there was no lengthy registration or verification process.
Accepting Tips With Crypto
Cwallet is an interactive cryptocurrency wallet that can be used with your social media platforms. It has numerous features, such as storing your coins, swapping, tipping, airdrops, and earning money on the go while also supporting the crypto-economy via social networking.
You can use Cwallet to receive your tips and donations on Tiktok. It is an ideal gateway that aids in developing the crypto economy. All you have to do is create a tip code and add it to your Tiktok profile. Cwallet has you covered for anything from tipping to exchanging or maintaining a community on social media platforms. You can follow this detailed guide on creating a tip code. Once you create your tip code, Cwallet will provide you with a link and QR code, which can be supplied in multiple forms. After that, you add the tip code to your profile to enjoy all the benefits of the Cwallet tip code.
Cwallet provided the solutions to the disturbing questions faced by many TikTok creators; “How do I receive my earnings without paying transaction fees?” “How do I minimize the taxes to pay on my income?” “How do I keep 100% of my earnings?” They found the answer with the Tip code. Now they can withdraw all of their earnings without worrying about paying transaction fees and saving on income tax.
Cwallet is a unique cryptocurrency wallet that combines custodial and non-custodial features. With the help of this combined on-chain and off-chain wallet, you can manage and trade over 800 cryptocurrencies in a single spot, providing security, simplicity, and flexibility. For example, you can use the Cwallet to organize FREE airdrop games and tip tokens for your friends and community members.
Cwallet does not charge any deposits, withdrawals, and token swap fees. Therefore, using Cwallet is absolutely FREE!
So, what are you waiting for?
Download Cwallet NOW!